Ajani Company has variable costs. equal to 35% of sales. The company is considering a proposal that will increase sales by $25,000 and total fixed costs by $16,250. By what amount will net income increase?

Ajani Company has variable costs. equal to 35% of sales. The company is considering a proposal that will increase sales by $25,000 and total fixed costs by $16,250. By what amount will net income increase?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Question

Please solve this account problem

Ajani Company has variable costs.
equal to 35% of sales. The company
is considering a proposal that will
increase sales by $25,000 and total
fixed costs by $16,250. By what
amount will net income increase?

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Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
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What amount of net income?
What amount will net income increase?
What amount will net income increase?
Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $6,000. By what amount will net income increase? A. $6,000 B. $4,000 C. $2,000 D. $0
If the contribution margin ratio solve this question